WaterNSW Industry Opportunities Industry Briefing 20 November 2019 - - PowerPoint PPT Presentation

Industry Briefing

WaterNSW Industry Opportunities

20 November 2019

WaterNSW

• Housekeeping
• Emergency evacuation

procedures

• Acknowledgement of Country

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Welcome

Phones to silent No photos Please wait until the Q&A sessions to ask questions

WaterNSW

• The scale and timetable for delivery of our portfolio is likely to challenge both the NSW

Government and the construction industry

• We want you to understand the opportunities where industry can work with

WaterNSW, and when those opportunities will come to market

• Today we will explain:
• To learn about the details of our large unprecedented portfolio of diverse and

complex water infrastructure projects

• Timeframes for the first wave of procurement

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Why we have invited you

What the opportunities are How and when we are going to engage with industry The professional services vis-à-vis construction

• pportunities

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Agenda

• CEO welcome and overview – David Harris
• Our infrastructure pipeline and opportunities – Andrew George
• Partnering with industry – Ronan Magaharan
• Q&A – David Harris, Andrew George and Ronan Magaharan
• Close – David Harris

Chief Executive welcome

David Harris, Chief Executive Officer

Who we are

• WaterNSW is a State-Owned Corporation

established under the Water NSW Act 2014

• We are responsible for supplying the State’s bulk

water needs

• We supply two thirds of water used in NSW from our:

– 42 dams, rivers and pipelines to regional towns, irrigators, Sydney Water Corporation and local water utilities.

• We build, maintain and operate essential

infrastructure

WaterNSW

Source water protection

• protection of the Greater Sydney drinking water catchment

Bulk water supply

• supplying water from our storages to customers in the Greater Sydney drinking water catchment and in

the State’s regulated surface water systems;

System operator

• efficient management of the State’s surface and groundwater resources

Bulk water supply infrastructure planning, delivery and operation

• planning, developing, owning and operating infrastructure to meet customer-defined levels of service

and in support of NSW Government policy and priorities

Customer water transaction services

• providing efficient and timely services to end use customers

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What we do – Our Market Functions

We play a vital role in improving the availability of water that is essential for water users and the communities throughout NSW – we do this through the delivery of our Market Functions:

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Our area of operations

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How we fit in the water market

Sydney Water Independent State Owned Corporation Local Water Utilities Local Government Local Governments Agricultural Enterprises Environmental Agencies

Regulators NRA, IPART, NSW Health, EPA

Our Customers

The policy-making arm of the Government Department of Planning and Industry - Water Articulates Government's policy outcomes from Government funded infrastructure

Government

Water treatment, reticulation and retail Water end-users

The Government’s bulk water Infrastructure authority Independent State Owned Corporation Plans, designs, procures, builds, operates and owns water infrastructure to meet Government’s policy

• bjectives

WaterNSW

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WaterNSW

• We have to deliver an ambitious portfolio of water infrastructure works, some with ambitious
• timeframes. For drought now and for future water security.
• The total value of capital works in planning and delivery is currently in the order of

$10 billion over 5+ years – the projects are:

• To assist townships experiencing severe drought conditions, a number of projects have to be fast

tracked and delivered within a short time frame

• To deliver the volume of work in the accelerated timeframes is a challenge, we need your

support to deliver.

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What has changed

We are capable of delivering large, complex water infrastructure projects, however, today we now face a number of challenges due to the scale and timing of the Portfolio:

Geographically dispersed Of diverse types, characteristics and scale At different stages of development

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Our strategic goals

WaterNSW

• We want demonstrated commitment and proven track record on safety and wellbeing,

aligned with our own commitment to zero harm

• We want partners who bring ideas and innovation
• Our broader commitment to communities and our customers must be upheld
• High standards of stakeholder and community consultation are expected
• We want to strengthen our performance – we need experienced and trusted

industry partners

• We will make timely decisions – ensuring critical issues are dealt with expeditiously
• A genuine partnership is essential in the delivery of this portfolio

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Our strategic goals will influence our selection of industry partners

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• In extreme drought, the only practical responses are measures that

reduce demand and bring on-line climate-independent sources of supply.

• The NSW Government is doing both – responding through demand-

side measures (introducing water restrictions) and supply-side measures (expansion of the Kurnell desalination plant).

• In deep drought that may not be enough, so WaterNSW has

commenced early investigations into augmenting Greater Sydney’s and the Illawarra’s bulk water supply network – potentially resulting in the construction of two additional desalination plants.

• At this stage the NSW Government has not finalised the investment

decision to proceed with these desalination options.

• If the drought breaks in the short term, the need for these

desalination projects will be re-evaluated.

• If the drought continues beyond the short term, it is important that

WaterNSW has completed all necessary planning work to be able to deliver this water supply infrastructure in time. This is the only responsible, prudent approach.

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Our strategic context for drought responses in Greater Sydney

“We have taken the decision to begin the planning for the expansion

• f the desalination plant.

There will be other schemes for Sydney, for the Hunter and other parts of NSW….We will be investing in dams, we will be investing in desalination, but also we must work on the adaptive side of the equation: efficiency and using the great resource that is now called wastewater” Dr Jim Bentley, Deputy Secretary Water (DPIE Water), 25 September 2019

Our infrastructure pipeline and opportunities

Andrew George, Executive Manager Water Solutions & Market Strategy

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Our initiatives and work in progress

WE ARE A CAPABLE CLIENT We have developed robust, long term water supply strategies OUR REPUTATION We have a reputation in Government as a skilled and successful deliverer of water infrastructure OUR EXPERIENCE We have successfully delivered high profile, high risk and complex projects OUR CORE CAPITAL PROGRAMME We are planning and delivering

• ther projects (aside from water

supply strategies) with TOC ~$1.2b Our strategies have been endorsed by Government to address:

• Immediate drought challenges
• Increasing lack of water security

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• Collaborative tender process included interactive Early

Contractor Involvement (ECI) with the market providing innovative solutions

• No Lost Time Injuries (LTIs)
• Success was built through trust and genuine partnership

between WaterNSW and the JVs

• Delivered under budget
• Delivered ahead of time for the community
• Joint Ventures (JV) engaged to design, construct, operate and

maintain the pipeline

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WaterNSW partnered with industry to deliver the Wentworth to Broken Hill Pipeline

$500m investment 270km pipeline 4 pumping stations 720 ML bulk water storage facility

Construction began in January 2018 and was completed by the end of that same year

JHG MPC

W2BH D&C JV

JHG TRILITY

W2BH O&M JV

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WaterNSW’s $10B portfolio

Development Market Engagement / Procurement Construction

$ - $0 – 250M $$ - $250-500M $$$ - $500M – 1B $$$$ - $1B+

All information provided is subject to change.

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WaterNSW’s capital investment profile

0.5 1 1.5 2 2.5 3 3.5 4 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028

Billions

If all projects were to be delivered

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Three new dam projects

Dungowan Dam (New)

• Replacement with a new, larger dam

downstream; ~55m high rockfill dam

• Improve water availability and security

in the Peel Valley and for Tamworth Regional Council

Wyangala Dam Wall Raising

• Raising of the embankment and

rockfill; 10m raising the spillway and intake towers

• Extra 650GL of storage capacity to

existing volume of 1,218GL

Mole River Dam (New)

• New~60m high rockfill dam
• Improve water availability and

security in the Border Rivers region

Short-term Market Engagement Timeframes

• Early project planning stages to commence before Christmas 2019
• Some limited advisory engagements

(delivery and procurement strategy)

• Preliminary Environmental Assessments
• Community and stakeholder engagement planning
• We will be coming to market for the main professional services

packages from late Q1 2020

• Early Contractor Involvement from at least mid 2020
• Early works packages to start as early as Q4 2020

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A third Sydney desalination plant

• Desalination to support Sydney, this is in addition

to any expanded Kurnell plant

• Early planning stages have commenced

Avon Deep Water Access

• Accessing an additional 2 years of supply deep in

Avon Dam to support the Illawarra region

• Early planning stages have commenced
• We will be coming to market for early works,

construction and related services from Q1 2020

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Our Greater Sydney drought response

Prudent planning, plan ready

Illawarra desalination plant

• Additional supply to support the Illawarra

region in deep drought

• Early planning stages have commenced

Leonay Borefield

• Groundwater supplies to supplement Warragamba
• Early planning stages have commenced
• We may come to market for detailed planning and

drilling services in Q1 2020

Contingent Drought Responses Current Drought Responses

If these drought conditions persist, noting the long lead times associated with desalination, we may be engaging with the D&C Construction and O&M parties from mid 2020

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Enablers to meet the challenge

Support of Government Your Capability Our Capability

WaterNSW Portfolio

Partnering with industry

Ronan Magaharan, Executive Manager, Assets

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Designers Contractors Suppliers Operators & Maintainers Consultants Specialists

Who we want to work with

Tunnelling Project

Dams

Desalination Plants

Weirs

Major Pipelines

WaterNSW

• We want a demonstrated commitment to safety
• All professional services will be competitively tendered
• Contemporary, collaborative procurement processes will

be adopted for the construction contracts

• We want to harness our partners’ ideas and innovation
• We want to enhance and strengthen our performance

through the experience of our industry partners

• We want genuine partnerships built on trust and

performance

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Principles for delivery

Principles for delivery

Innovation Competitive tendering Experience Safety Partnerships Collaboration

WaterNSW

Partner to run a Portfolio Management Office and provide delivery management services

• We will be procuring a Portfolio Delivery

Management Partner (PDMP) to assist us in setting up a leading edge Portfolio Management Office, with people, processes and systems

• The PDMP will drive the portfolio to meet

time and budget requirements

• The PDMP will need a team of experienced

professionals to work in an integrated team environment with WaterNSW to help in the development and delivery of projects Broader Industry

• We have already engaged industry for some
• f the ongoing projects (dams, desalination

plants, etc.)

• Early planning works will have commenced

for the following dam projects: – Wyangala Dam – Dungowan Dam – Mole River Dam

• We will be procuring professional services for

projects at various stages of planning and development

• We will be procuring construction contracts

for the range of projects in the portfolio

How we will engage with industry

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Portfolio Delivery Management Partner

WaterNSW

• Form part of an integrated team with

‘embedded’ WaterNSW personnel

• Boost WaterNSW’s capability and capacity
• Manage the development and delivery of critical

NSW infrastructure projects

• ‘Ramp up and down’ as required by individual

projects

• Drive culture of high performance and best practice
• No self-performance (unless by exception)

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Portfolio Delivery Management Partner (PDMP) expectations

WaterNSW PDMP Critical to successfully delivering the portfolio within compressed timeframe and budget

WaterNSW

Design Management Digital Engineering Management Environment Assessment and Management Time Management (Programming and Scheduling) Cost Estimating and Control Risk and Opportunity Management Quality Management Sustainability Management Interface Management Procurement Management Stakeholder and Communications Management Construction Management Operational Readiness Asset Management

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Range of capabilities required by the PDMP

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PDMP procurement timeline

Industry Briefing EOI RFT Contract Award Milestone Target timeline EOI

Pre-registration for EOI 20 - 26 November 2019 Release of Invitation for EOI 29 November 2019 EOI close 20 December 2019 Announce RFT tenderer shortlist Late January 2020

RFT

Release RFT Late January 2020 Tender close Mid March 2020

Contract Award Mid April 2020

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✓ Complete the EOI Pre-Registration process through eTender, open from: 20-Nov (5pm) to 26-Nov (2pm) ✓ PDMP EOI released to successful Registrants on 29-Nov 2019 ✓ Contact details for further information on the PDMP EOI process will be provided upon registration

30 Mandatory criteria is financially and capability based

PDMP next steps

Must satisfy mandatory criteria to receive Invitation for EOI Pre-Register on eTender before 26-Nov 2019 Invitation for EOI to successful registrants 29-Nov 2019

Broader Industry Partners

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Broader industry partners

• We encourage industry to participate at all stages of a project lifecycle as we will

be procuring:

• All opportunities will be included on the WaterNSW website, on an ongoing and

regular basis – as well as on e-Tender – Business case input and writing – Concept design and development – Environmental planning assessment (determination will sit with WaterNSW) – Stakeholder and communications – Construction and construction management – Independent verifiers (including dam safety experts) – Others We are seeking ongoing engagement with the broader industry – starting from today

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• We will continue to procure many of the Professional Services required to establish

projects in the portfolio

• We encourage industry to partner or to form professional relationships so that the

best of industry is represented in the down stream construction activities

• We are interested in hearing from industry in terms of a range of capabilities and

lessons learnt from overseas

• We encourage you to help WaterNSW deliver this exciting portfolio and to lift the

capability of the water industry in NSW

• We will run a further industry briefing in 2020

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Broader opportunities

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Questions?

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Where to next

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Thank You